Tariff Reform in the Presence of Sector-Specific Distortions
AbstractThe problem of choosing second-best trade policies is modified by including sector-specific policies as well as tariffs. Formulae for the optimal tariff and sector-specific subsidy are derived and used to study the design of optimal policy menus. The theory is applied to a computable general equilibrium model of the U.S. economy that emphasizes agriculture. The model suggests that nonagriculture distortions do not provide a second-best argument for substantial levels of agricultural protection.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 25 (1992)
Issue (Month): 2 (May)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Other versions of this item:
- BEGHIN, JOHN C & Karp, Larry, 1990. "Tariff Reform in the Presence of Sector-specific Distortions," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4n52q5mn, Department of Agricultural & Resource Economics, UC Berkeley.
- Beghin, John C. & Karp, L., 1992. "Tariff Reform in the Presence of Sector-Specific Distortions," Staff General Research Papers 1581, Iowa State University, Department of Economics.
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- Karp, Larry, 1997. "A Neoclassical View of Trade Liberalization," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt13f2q378, Department of Agricultural & Resource Economics, UC Berkeley.
- Beghin, John & Chang, Ruey-er, 1992.
"Differentiated products and supply controls in the analysis of agricultural policy reform: the case of tobacco,"
Agricultural Economics: The Journal of the International Association of Agricultural Economists,
International Association of Agricultural Economists, vol. 7(3-4), October.
- Beghin, John & Chang, Ruey-er, 1992. "Differentiated products and supply controls in the analysis of agricultural policy reform: the case of tobacco," Agricultural Economics, Blackwell, vol. 7(3-4), pages 301-315, October.
- Beghin, John C. & Chang, R., 1992. "Differentiated Products and Supply Controls in the Analysis of Agricultural Policy Reform: The Case of Tobacco," Staff General Research Papers 1574, Iowa State University, Department of Economics.
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